Rock v. Dennett

30 N.E. 171, 155 Mass. 500, 1892 Mass. LEXIS 359
Massachusetts Supreme Judicial Court·Decided February 24, 1892·Published·Cited by 9 cases

Opinion

Barker, J.

The demandant claims under a deed from an assignee in bankruptcy, made January 24, 1889. Whatever right the assignee had, he acquired as part of the bankrupt’s estate, in March, 1876. He had never entered upon or been in possession of the premises until the time of the delivery of his deed. Since, if the premises had been unoccupied, or occupied with his consent, the possession would have followed his title, it results that from March, 1876, until January, 1889, the possession had been held adversely to him. The demandant must recover on the strength of her own title, and has no better right than the assignee. Before the assignee made the deed, his right of action was barred by the provisions of the U. S. Rev. Sts. § 5057, that “ no suit, either at law or in equity, shall be maintainable in any court between an assignee in bankruptcy and a person claiming an adverse interest, touching any property or rights of property' transferable to or vested in such assignee, unless brought within two years from the timé when the cause of action accrued for or against such assignee.” This limitation is not confined to suits in which the assignee is himself a party, and purchasers from an assignee cannot maintain an action against persons claiming adverse rights, if at the time of purchase the assignee’s right of action was barred. Gifford v. Helms, 98 U. S. 248. Wisner v. Brown, 122 U. S. 214. Greene v. Taylor, 132 U. S. 415. In the case last cited it is said by Mr. Justice Blatchford that “a conveyance by [502] the assignee in bankruptcy cannot prevent the operation of the bar of the statute against the grantee when it has already run against the assignee, or bring into action a new period of limitation, dating from the time of the conveyance.”

The demandant, however, contends that there was no adverse holding of the demanded premises until the tenants or their ancestors took possession, in 1880. Assuming that the report can be so construed, it would follow that the assignee in bankruptcy became seised of the premises under the assignment to him of the bankrupt’s estate in March, 1876, and continued in possession until the year 1880, when he was disseised by the ancestors of the tenants, and that since the disseisin the premises have been held adversely to the assignee.

It is contended that the limitation contained in the U. S. Rev. Sts. § 5057, does not, under such a state of facts, bar the demandant’s action, because, as it is claimed, that limitation applies only to suits in respect of property to which adverse claims existed while it was in the hands of the bankrupt, and before assignment, and does not apply to wrongs done to the assignee or to property of the estate after it has vested in him; and also for the reason that section 5057 was repealed on September 1, 1878, and at the time of its repeal there was no adverse interest touching the premises; and that the adverse claim of the tenants and their ancestors having come into existence since the repeal of the statute, the statute can have no application.

But the statute has a wider operation than that for which the demandant contends. As is said by Miller, J., in Bailey v. Glover, 21 Wall. 342, 346, 347, it “ applies to all judicial contests between the assignee and other persons touching the property or rights of property of the bankrupt transferable to or vested in the assignee, where the interests are adverse and have so existed for more than two years ,from the time when the cause of action accrued, for or against the assignee. . . . Congress has said to the assignee, you shall commence no suit two years after the cause of action has accrued to you.”

The narrower view of the corresponding provisions of the Bankruptcy Act of 1841 (U. S. St. August 19, 1841, § 8) taken by Mr. Justice Nelson in In re Conant, 5 Blatch. 54, and followed [503] in Stevens v. Hauser, 39 N. Y. 302, is inconsistent with the views of Mr. Justice Curtis in Pritchard v. Chandler, 2 Curtis C. C. 488, and contrary to the plain implication of the decision of the Supreme Court of the United States in Banks v. Ogden, 2 Wall. 57, 70. The explicit and comprehensive statement of the construction of the limitation given in Bailey v. Glover, ubi supra, is plainly inconsistent with the contention of the demandant, and with the doctrine of the cases on which he relies. It is said in Traer v. Clews, 115 U. S. 528, 538, that the case of Bailey v. Glover has never been overruled, doubted, or modified by the Supreme Court of the United States. It is undoubtedly the authoritative exposition of the law, and conclusive upon the point that the short statute of limitations applies to adverse claims arising after the assignment in respect to property vested in the assignee. See also the opinion of Dillon, J., in Walker v. Towner, 16 Nat. Bank. Reg. 285, 287, and cases cited. It follows that the statute is a bar to the demandant’s action, unless its repeal has made it inoperative in the present case.

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Rock v. Dennett, 30 N.E. 171, 155 Mass. 500, 1892 Mass. LEXIS 359 (Mass. 1892).

30 N.E. 171 (Rock v. Dennett) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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